Asset allocation is the proportion of your portfolio spread across a number of asset classes, markets and regions. Understanding return on investment return on investment roi plays a major role in business, but it can be a difficult concept to grasp. Understanding return on investment shows you how to better utilize this essential tool by simplifying and clarifying all its important points. Roi return on investment measures the gain or loss generated on an relative to the amount of invested. Understanding investment concepts 5 asset allocation. The purpose of this paper is to present the manner in which the roi return on investment indicator can be used in the analysis of investment projects. Understanding a basic return on investment formula can help your best utilize your marketing dollars. Pdf return on investment indicator for measuring the. Why a return on investment formula matters here are.
Understanding return on investment download ebook pdf. Investment fundamentals an introduction to the basic. Despite the diversity of the defini tions, the primary notion is the same. Every investment is expected to deliver a return, but what does return mean exactly. Return on investment roi is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. Calculating return on investment began in the manufacturing sector, where it was. Understanding the roi of training is important for your own personal knowledge and improvement of your work or the. Understanding the concept of investment is the first issue addressed. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. What is return on investment roi return on investment roi is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. Priced factors include the return on a stock index, revisions in fore casts of future stock returns to capture intertemporal hedging ef. The goal, as with any roi calculation, is to end up with a positive number, and.